The acquisition of a 19% stake in Virgin Australia (VA, Brisbane International) by Qatar Airways (QR, Doha Hamad International) is expected to be announced within days, pending a preliminary green light from the Australian government’s Foreign Investment Review Board, according to The Australian newspaper.

Reportedly named “Project Doubles,” the shareholding would see Qatar Airways deepen its ties with the Australian carrier at the expense of its Oneworld partner Qantas (QF, Sydney Kingsford Smith). The Qatari airline and Virgin Australia already have a codeshare arrangement that, among other things, sees Qatar preference Virgin frequent flyers over those at Qantas. The reportedly imminent announcement caps ongoing speculation about a possible deal. Last month, Qatar Airways acquired a 25% stake in Airlink (South Africa) (4Z, Johannesburg O.R. Tambo).

In 2023, Qantas lobbied the Australian government to block an application by Qatar Airways for additional flying rights to Australia. The existing bilateral agreement between the two countries allows for 28 weekly flights to Australia’s four main airports – Sydney Kingsford Smith, Melbourne Tullamarine, Brisbane International, and Perth International. In contrast, Emirates (EK, Dubai International), with which Qantas has a codeshare partnership, is allowed to operate up to 168 weekly to the same four airports.

The rejection of Qatar Airways’ application, at a time when there was an undersupply of capacity in and out of Australia, proved controversial and sparked considerable criticism. Qatar Airways has since resubmitted its application for more flights.

Qatar’s shareholding will give Virgin Australia majority-owner (93%) Bain Capital a firm valuation as it continues to mull an IPO. Bain acquired Virgin Australia for AUD3.5 billion (USD2.35 billion), including liabilities, in 2020 after the airline was placed in voluntary administration. It has since recouped the bulk of the cash component of that investment and Virgin Australia is now trading profitably, although it is yet to release its FY2023 financials.

Virgin Australia referred requests for comment to Bain Capital, which declined to comment. ch-aviation has also approached Qatar Airways for comment.